Batm Advanced Communicat... Share Discussion Threads

[emeraldzebra] 01/6/2021 11:13

Yet the gloom and doom for the share price continues unabated. Frustrating.....more patience needed.....

[fse] 29/5/2021 21:24

Yes thanks Wizz for posting that. Simply Wall Street analysis on ROE is spot on.
There are 2 very poignant conclusions out of all of this.
One is that BATM manage to develop their IP in house without diluting shareholder equity.
If they make an acquisition or raise a stake in one of their holdings this should be treated differently as its making a bigger pie so to speak.
The other factor is that having 10c on the $ to play with they can cover the R&D with enough left over to pay a dividend.
Its quite possible that BATM could cover a 2c/$1 or 2% dividend.
I am not sure what their plans are but if they do decide to retain this money it will be due to expansion needs.
Earnings slow down are predictions made on the value of the Covid content making less of a contribution.

I know I have been posting a lot recently but I have been riding shot gun on these. Waiting for the share price to settle to BUY a few more.
I would speculate many are doing the same.
I rate FMV for BATM at time of writing >120p which sort of ties in with Simply Wall Street suggestions.

On another amusing sideline I have introduced BATM/Adaltis/Ador products to a regional airport here. Not sure whether they will get a sale or not but suffice to say that they are at least getting looked at.
Must get a brief from Celitron to give to the local meat processing plants. Thats another disaster looking for a place to happen unless they stop trucking around animal waste.

[james dean] 29/5/2021 20:21

wizzkid211

Thanks.

[wizzkid211] 29/5/2021 19:43

BATM Advanced Communications Ltd.'s (LON:BVC) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
BySimply Wall StPublishedMay 28, 2021
LSE:BVC
With its stock down 16% over the past three months, it is easy to disregard BATM Advanced Communications (LON:BVC). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on BATM Advanced Communications' ROE.

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

Check out our latest analysis for BATM Advanced Communications

How Do You Calculate Return On Equity?
The formula for ROE is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for BATM Advanced Communications is:

9.7% = US$11m ÷ US$119m (Based on the trailing twelve months to December 2020).

The 'return' refers to a company's earnings over the last year. That means that for every £1 worth of shareholders' equity, the company generated £0.10 in profit.

What Is The Relationship Between ROE And Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

A Side By Side comparison of BATM Advanced Communications' Earnings Growth And 9.7% ROE
At first glance, BATM Advanced Communications seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 4.4%. This probably laid the ground for BATM Advanced Communications' significant 83% net income growth seen over the past five years. We reckon that there could also be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.

We then compared BATM Advanced Communications' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 45% in the same period.

past-earnings-growth
LSE:BVC Past Earnings Growth May 28th 2021
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about BATM Advanced Communications''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is BATM Advanced Communications Efficiently Re-investing Its Profits?
Given that BATM Advanced Communications doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.

Conclusion
In total, we are pretty happy with BATM Advanced Communications' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down.

[fse] 29/5/2021 16:53

This was announced just recently just a couple of months ago.



"The new method combines a one-step PCR test, developed by the Group's Adaltis subsidiary, with testing on the NATlab instrument using the new isothermal RCA process developed by the Group's Ador Diagnostics associate company. The PCR test diagnoses if someone is infected with TB and, if they test positive, the NATlab system is used to identify the strain of TB and its resistance to antibiotics (including rifampicin, isoniazid and quinolones). This process, which tests the same sample in both phases, is expected to produce results in approximately two hours, compared with several days for the current commonly used methods that often rely on incubation to determine antibiotic resistance after a patient has been diagnosed as infected with TB."

What is important here is the shift to having testing do more of the heavy lifting. This process could be applied to other infectious disease strains. There was mention of it on BATM twitter account and I can see why they brought it up again. Its putting testing which was always seen as just determining if you had a disease to a new level. Where they say this is what you have , this is the strain/variant and this is what you need to take to combat it. The cost savings to medical institutions is huge and the benefits to the patient so much more "on track".
I know 2 months is old news to some but maybe just reflect on this .....

[fse] 29/5/2021 16:01

Of more practical interest to us over here ....
The US stimulus plan >6Tn is going to spend very heavily on broad band infrastructure.
At the same time Telco regulators are squeezing profits from operators.
Providers are going to be forced to move to the cost saving solutions of virtual networks ...cue NVFTime.

We had a period of living in a "Zoom" world for a year and whilst a lot is going to return to normal. The pandemic accelerated the need for having a back up plan. The internet allowed at least some business to function normally.

Zvi has regularly mentioned he expects revenue from licensing NVFTime to start trickling in. That trickle just got a dam burst behind it. Revenue from this might be slow at first but there is a sense of urgency to roll out these Telco upgrades.

[fse] 29/5/2021 15:45

>iceman.... ticked boxes and CE are never a foregone conclusion. Well funded companies can afford to go back to the drawing board.
Delays to certification can be costly.
There are a lot of companies working in the field of medical diagnostics so patent protection is another pit fall.
In any event can we keep AVCT over on the AVCT thread its precious little to do with BATM.
Thanks... and hope it works out for you.


RNS Number : 1613A
Avacta Group PLC
28 May 2021

Avacta Group plc

("Avacta" or "the Group" or "the Company")

Response to speculation

Avacta Group plc (AIM: AVCT), the developer of innovative cancer therapies and diagnostics based on its proprietary Affimer(R) and pre|CISION(TM) platforms, notes speculation regarding the ongoing CE mark submission for its SARS-CoV-2 Antigen Lateral Flow Test to the Medicines and Healthcare products Regulatory Agency ("MHRA") by its partner Mologic Limited ("Mologic").

To date, neither Avacta nor Mologic have received any update from the MHRA. Avacta will update the market when it is in a position to do so.

-Ends -

Added.

[icemaninvestor] 29/5/2021 02:35

Hi DocCash, thanks for your question. The MHRA accreditation is simply a tick box exercise now & CE mark should be granted in the coming days. However, if this shot at goal doesn’t work the company start a trial at the start of Q3 that will deliver oncology drugs without the severe side-effects. Plus they have much more IP and partnerships on the go too.

[doccash] 28/5/2021 11:45

I think you are just over negative on BATM and bigging up your alternative investment. Interesting company but still a punt at the current price. You have not judged BATM on the same criteria and are sitting hoping for MHRA accreditation for Avct. Anybody reading that forum would understand why FSE politely asked you to call it a day,after expressing your opinion repeatedly. What price drop are you happy to risk if no MHRA accreditation?

[icemaninvestor] 28/5/2021 00:58

FSE, I retain a small holding in BATM and am looking to invest further if I see value. These boards should be about reasoned debate not an echo chamber for cheerleaders, what's the point in that?

I have as much right to post here as you do.

You don't have to respond to my posts but I welcome your opinion as well as others. I've given my take on why the share price rose dramatically and consequently dropped by 38% and I'm really keen to know what other PIs think.

[fse] 27/5/2021 14:43

>iceman.... You do not seem to appreciate that BATM is a collection of companies.
Telco systems is the largest holding they have.
You should never invest in a company that "you" have decided has no real chance for revenue growth.

Can we leave it at that because I have seen the Avacta thread and it would be a shame to have this one degenerate to those levels.

Maybe you should ask the same questions on the Avacta thread, they could desperately use some informed input over there. Good luck with your investment.

[icemaninvestor] 27/5/2021 03:04

DocCash, it's not that I'm not interested in a company with p/e over 50, I just want to be confident that this will come down in the future. Unfortunately I cannot see that happening with BATM for quite some time. Avacta don't even have a p/e ratio but I can see how that will change in the very near future.

FSE, actually the Bio-Medical side of the business is bigger than the Telco systems side, per the latest annual report 70% of revenue was from Bio-Medical.

[fse] 26/5/2021 18:44

We also seem to forget that BATM largest holding or interest is Telco Systems not Covid systems.... WTF ;-(

[doccash] 26/5/2021 18:23

Remember he's not interested in company with p/e over 50

[wizzkid211] 26/5/2021 07:43

Block listing Interim Review
BATM ADVANCED COMMUNICATIONS LD
Released 07:00:08 26 May 2021

RNS Number : 8013Z
BATM Advanced Communications Ld
26 May 2021

BLOCK LISTING SIX MONTHLY RETURN



Date: 26 May 2021



Name of applicant:

BATM Advanced Communications Ltd

Name of scheme:

2004 Option Plan

Period of return:

From:

26 November 2020

To:

26 May 2021

Balance of unallotted securities under scheme(s) from previous return:

3,109,777 ordinary 0.01 NIS shares

Plus: The amount by which the block scheme(s) has been increased since the date of the last return (if any increase has been applied for):

Nil

Less: Number of securities issued/allotted under scheme(s) during period (see LR3.5.7G):

Nil

Equals: Balance under scheme(s) not yet issued/allotted at end of period:
3,109,777 ordinary 0.01 NIS shares



Name of contact:

Lior Miles

Telephone number of contact:

[phone]

[icemaninvestor] 26/5/2021 04:00

FSE, thanks a million for the response. The BATM share price peaked at £1.40 on 19th July 2020 and was 87p yesterday, a decrease of 38%. I attribute that decrease to investors realising BATM will not be making huge revenue increases from Covid-19. You say the company is not a Covid-19 stock but I think investors, myself included, saw it as such when the virus struck. I sold the bulk of my BATM shares when they were >£1 in Q3 last year and have reinvested the funds in a company (you know the one!) which has since seen a large share price increase upon anticipated significant Covid-19 earnings.

You state BATM's value is in the IP but the IP has only been improving since July 2020, so why the 38% decrease in the value of the IP?

It seems to me that you are hanging your hopes on a company buying out BATM for the IP, is that correct?

If only BATM could significantly monetise the IP themselves, then we might see a retrace above £1...

[fse] 24/5/2021 17:07

these can be put in place in places as they say like care homes.
The advantages are obvious and the collection method is non evasive and the results due to sample methodology virtually 100% accurate.

[fse] 21/5/2021 20:44

>jd.... correct. A lot of people don't know what BATM stands for...
heres some history. I am sure it will surprise a fair few.
Weekend reading !



Added: I imagine the likes of JD have some stories as well. I have been invested with BATM pretty well from the outset. They rose astronomically in the late 90's on the back of the invention of the photonic switch. Maroms view on communications was visionary and his remarks back in the 90's could have been Elon Musk today. He saw a totally connected universe.
There is a disputed blip in valuations due to a 10:1 share split.
The photonic switch was ahead of its time and the tech collapse of 2000 was a rude awakening and technology was set back for quite a few years NASDAQ collapsed to a slither of its former self.
I made and lost an incredible amount of money on technology shares. A lot of them start ups where the tech was lost completely and never brought to market.
BATM though was always well capitalized and always had a back door. The company survived and I bought back @ 11p to 13p which is still the bulk of my holding.
The share recovered slowly.
BATM with Telco systems as its main concern then got wrong footed indirectly by Apple and the collapse of Nokia.
2 lessons learnt were not to rely on one product and the second not to have too much riding on one large re supplier /client.
It's a very different story today with numerous associated and directly owned companies in two different fields with a huge array of products.
If you want to value BATM try valuing Adaltis alone! The sum of the parts as Simon Thompson pointed out. Something I agree with.

Hope this and the clip above will give some idea as to where this company has been and where it is heading and why.... have a good weekend.

[wizzkid211] 21/5/2021 19:27

ZVI said that the rapid untigen tests being used in the UK is from CHINA...

[james dean] 21/5/2021 19:10

.
Baras Advanced Technologies Marom
.

[fse] 21/5/2021 18:47

OK fun quiz for you... who started making these in 1992 ?

[fse] 21/5/2021 15:57

>ice man..... not looking to discuss Avacta in depth but you mention their IP and fundamentals. Anything I would say would be a snapshot as I am not invested in Avacta and do not plan to be as they do not meet my investment criteria.
Some of what Avacta do could be compared with Adaltis but really they are more specific like Novacyt

You mention fundamentals.
To my knowledge Avacta do not make a profit, have little if any extra cash, no PER or EPS to look at, no dividend.Market cap of @650M almost twice the entire BATM (including Telco) and no growth.

What they appear to have/could have is a more accurate lateral flow test than potential "current" competition which is not yet certified which could be a winner for them.
The risk here is I cant see how they could control a patent on that and they do not know what their competition are working on.

You do hit on one point that is that Avacta lateral flow tests that are up for possible certification are more accurate. BATM were working with Novamed on just this issue. Novamed are a medium size lab who are specifically familiar with this type of test media. My understanding is that they have hugely improved the accuracy of this test and are still actively working on this. BATM are "developing" not "manufacturing" this test with Nova Med.
BATM test is available now after some tweaks to get it more reliable than originally anticipated. Zvi is quite intent on upping the accuracy further and sees its value in other environs.

Limited portfolio diagnostic companies run the risk of having their main product eclipsed by a competitor.
Having said all of that Roche wanted to pay 1.3bn for Genmark diagnostics I had shares in to get a piece of technology they felt cheaper to buy than develop.

So could Avacta be a winner ?
A biotech investor with a good portfolio of disruptive technologies might want to have a measured investment with AVCT. Like GNMK they could just make it to the big time.

IP . BATM have valuable IP across a wide area of the infectious diseases market, cybersecurity and 5G architecture
I cant really see the comparison.

Added: I posted this link a couple of days ago here it is again.



My understanding is that Novamed were/are development partners. They do manufacture a small amount of product. Gamidor are a huge distribution company. I dont get the impression this was a switch. I am also not certain if any of these partners have much to do with larger manufacture.



Remember this is the current test certified and available for sale. It does not reflect advancements in use and accuracy being developed as we speak. Expect upgrades to this test and its usage outside of Covid.

[icemaninvestor] 21/5/2021 00:19

Thanks for the reply FSE, and the cheeky comment at post 18525! We both agree that BATM have excellent IP. Personally, I have no idea how to value this IP but I do understand a little about fundamentals. My take on the BATM share price is that it shot up last year because big revenues were expected from Covid-19. Sure, the IP became more valuable as people woke up to the importance of diagnostics but it was the expectations of big revenues that was the main driver.

I was one of the investors expecting big revenues and I'll use the lateral flow test as an example, although this example could be used for any of the BATM products. In March 2020 BATM announced the partnership with Novamed to develop the test so I checked out the Novamed website which was amateurish to say the least. In June BATM announced this test would be released in Sep and Zvi stated that production would be 250,000 per month. The capacity didn't impress me much so I checked out other companies in this space and came across a company called Avacta.

Like BATM, Avacta have excellent IP and they also took the decision to develop a lateral flow test. But instead of partnering with a piddly little company in Israel with tiny capacity, Avacta were very ambitious and sought multiple manufacturing partners that have capacity for millions of tests per month. This commercial ambition impressed me and this is when I switched the vast majority of my funds from BATM to Avacta.

As we know, BATM never launched the Novamed lateral flow test in Sep and partnered with a company called Gamidor Diagnostics instead. Not sure when they announced this partnership and the dropping of Novamed, if they announced it at all - I had not been following BATM as closely at this stage. The test with Gamidor was announced on 18th May but with no reference to capacity. I suspect the capacity will be in the hundreds of thousands per month rather than millions per month.

Avacta will be launching their test any day now (which incidentally is more accurate than the BATM test). Let's see if I made the right decision...

[lsoc85] 20/5/2021 21:50

Ceasefire called, thank Christ. Hopefully business can get on without the headbanging ultra nationalists ruining it for the money makers.